Joe Finds a Dog Wandering in His Yard and He

question 7

Multiple Choice

Joe finds a dog wandering in his yard and he lets it into the house.A day later he sees an advert on a tree stating that the owner of the dog will pay $100 to anyone who finds and returns the dog to the local SPCA office.Joe takes the dog to the local SPCA office.Which of the following is true?

• A)Joe did not communicate his acceptance of the offer to the SPCA and so no contract arose.
• B)The kind of advert that is placed on the tree cannot give rise to a contract.
• C)When Joe takes the dog to the SPCA,he makes the offer and if the SPCA accepts the offer,they are obliged to pay him.
• D)The advert on the tree is an invitation to do business and cannot give rise to a contract.
• E)Joe will be entitled to the reward because his performance of the obligation in response to the offer is all that is needed in a unilateral contract.

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Definitions:

Warranty Cost

Expenses associated with the repair, replacement, or refund for products within their warranty period.

Actual Warranty Costs

The real expenses incurred by a company to repair or replace products under warranty.

Journal Entries

The method by which transactions are entered into an accounting system, typically involving a debit to one or more accounts and a credit to another.

Warranty on Parts

A guarantee provided by a manufacturer or seller regarding the condition of parts or components and their performance over a specified period.